Extension of two percent interest subvention on rupee export credit, till March 31,2014, has been welcomed by the handloom industry in Panipat.

The Commerce Minister, Anand Sharma, today announced extension of two per cent interest subvention Scheme on rupee export credit up to March 31, 2014. The scheme available to certain specific sectors including handicrafts, carpets, handloom, readymade garments was scheduled to end on March 31, 2013.Along with this , Small and Medium Enterprises (SMEs) for all sectors will now be able to avail the benefits of the Scheme.

Pradeep Tayal, consultants to the exporters in Panipat, said , it was imperative form the government to extend the scheme till 2014, keeping in mind the slowdown in global economy impacting exports.

Handloom exporters in Panipat are already anticipating a slowdown in exports this year(2012-13) . The belief stems from the fact that exports say European and US markets (contributes over 70% of the export business) have seen a contraction in demand for home furnishing items. As per Prem Vijh, President Panipat Exporters’ Association it would be difficult for the handloom exporters from Panipat to reach business of Rs 3000 cr this year, considering contraction in demand from markets US and Europe.